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5 essential documents required for a business loan

Every lender demands certain documents to prove the borrower’s creditworthiness and prepayment ability before availing lending a business loan. Here is the list of business loan documents that you need to gather to prevent unwanted delays in the disbursal of the loan amount.

1. KYC documents
KYC documents such as driving license/ration card/passport/voter’s identity card maintain transparency and reduce fraudulent transactions.

2. Business proof
This is required to prove your business identity. These documents include GST registration, electricity bills, IT return of your business, excise registration, registration number under Shops and Establishment Act, Memorandum of Association and/or Articles of Association.

3. Bank account statement
You need to submit the business’ bank account statement for the past 12 months (6 months for first-time borrowers) to help the lender decide the business loan amount based on your liquidity.

4. Financial documents
You need to prove that your business is financially stable by submitting audited financial statements comprising profit and loss statements, tax audit report of the past 3 years, and balance sheets along with business’ projected turnover for the year.

5. PAN cards
Submit your PAN card as well as that of all proprietors, promoters, directors, and partners to verify the identifies.

You also need to submit your passport size photograph in addition to all these business loan documents. Make sure to choose a lender, such as Bajaj Finserv, who requires minimal documents to sanction the loan.

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